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Schaumans and Verboven, Entry and Competition in Differentiated Products Markets, RESTAT


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1. The data for this work is confidential as it concerns revenue data of firms in small local markets. The paper is therefore exempted from the data requirement.
The data is obtained from FOD Economie, contact person Luc Mari�n




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2. After retrieving the election of professions from the database, we ran per profession a do file to clean the data and get insights in the industry (STATA, v12).
The do files are made available and contain detailled information for replication purposes:
  * ETR_Stata_Architects.do
  * ETR_Stata_Bakeries.do
  * ETR_Stata_Butchers.do
  * ETR_Stata_Floristss.do
  * ETR_Stata_Plumbers.do
  * ETR_Stata_RealEstate.do
  * ETR_Stata_Restaurants.do

STRUCTURE OF THE PROGRAM

PART 1: merge the datafile of the sector characteristics with demographic information
PART 2: get initial insights in the data/sector = single equation estimation of revenue and entry equation
	Analysis on firms with 1 or at most 2 establishments - non-urban markets with revenue info



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3. We programmed our likelihoodfunctions in Gauss (Apech 2007).
The programs consider all professions and different specifications, generate all tables in the paper and contain detailled information for replication purposes:
  * Schaumans and Verboven_Gauss_constant elasticity model.txt 
	this is the code to estimate the constant elasticity models
  * Schaumans and Verboven_Gauss_fixed effects model.txt
	this is the code to estimate the fixed effect models

  Program set up:
    Step 1. Set options = which equation to estimate  + which sector
    Step 2. Import dataset and define all variables 
    Step 3. Market sampling
    Step 4. Create explanatory variables and variables required for estimation
    Step 5. Specify starting values and generate labels for the output
    Step 6. Calling the maximum likelihood procedure
    Step 7. Output

    Procedure 1. Defining the likelihood function, depending on which equation we estimate (options)
    Procedure 2.1. Calculating the entry thresholds and ETRs for the simple entry model
    Procedure 2.2. Calculating the entry thresholds and ETRs for the simulaneous model of entry and revenue


DATA DIRECTORY:

post                      zipcode
mpop                      number of inhabitants 
surf                      surface market --> population density 
totinc                    total reported income on taxe reports 
aangift                   total number of tax report submitted 
female                    percentage of female 
foreign                   percentage of foreign 
kid                       percentage younger than 10 years 
young                     percentage between 10 and 25 years 
adult1                    percentage between 25 and 39 years 
adult2                    percentage between 40 and 65 years 
old                       percentage over 65 years 
unempl                    percentage unemployed 
fla                       located in Flanders 
bru                       located in Brussels 
wal                       located in Wallonia 
popdens			  population density
Nprof          		  number of professionals
Rprof          		  revenue of these professionals    
Nprof_rev      		  revenue divided by the number of professionals  